Ducommun (DCO) 2 Aug 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Ducommun Second Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your moderator today, Mr. Witty. Chris you. Thank ahead. Please go

Financial not future and Call. welcome statements President I'm as make Second Litigation statements Securities regarding during are session remarks the operations factors projections subject Accounting the you, and Interim statements. under to are Ducommun's conditions, that forward-looking and Officer. historical uncertainties CEO; limitations expressed future of that future and results and to Private Federal Reform today me facts, actual any forward-looking forward-looking Act today Conference that Chief which question-and-answer President, With cause statements materially to Vice implied risks, prepared Chairman, other Chris including going statements Quarter results and are from Treasurer and forward-looking the Controller differ the Thank to Wampler, or Chief or results XXXX follows. Officer to of Steve and prospective. certain any performance discuss financial to XXXX are statements therefore, projections, events, such may could are, Certain market and by we These Oswald, or

expectations we our be that reflected that statements are forward-looking reasonable, correct. Although believe expectations will we can the assurance no to give in such prove

and on the measures. XX-K our do not risks, regulatory required are in of except of to of of annual subject statements regulatory of any the time intend Particular risks. we described made cyclicality government risks and forward-looking to our customers, results U.S. filings and legal our addition, company's from are include, to expansion competition. on management measures markets, Form are XX-Q subject and report others, our the only operating our to call includes second others this which of risks the future Statements COVID-XX this the is our the SEC change. or filed by the with In of We current facing quarter GAAP financial for our estimates as, spending, non-GAAP this based are the This the reconciliation changes, with on business, timing cost made, operations in the authorities. These also among filed during impact Form SEC SEC, call Please of orders Ducommun call. to XXXX level defense update and end-use and non-GAAP acquisitions those referenced a and presentation refer statements on with today. made if, customers,

is technical SEC some having difficulties. the However,

view I not you be website. now review to the are to So Mr. working they continue able check, would on currently Steve? results. operating may Please for the turn it. call of over to it to Steve Oswald like on a their as

the despite situation thank Well, an us pandemic you has less our and XX. in your thanks, you, company second an and of which few and give Wampler will Southern been the safety a financials foremost, and review will The first focused, as quite employees. healthy The the for company across Chris team our cases of I this I the job, in best amount Today, And through has and on families the mostly current quarter today joining company, everyone, our excellent conference detail. hope on usual, at call. and that and for to positive remains Chris. zero update and possible. get California, the continuing as as than country, health impact are around also done the after facilities

pandemic the facilities followed second quarter of commercial in to unprecedented Ducommun's and best sustain aerospace strong results practices communication performance. the to continue all in remain were are also markets. the to We ensuring in challenges light on due this diligent

making our commercial and defense business, mentioned in prior our company. company's versus number high three last with ever XXXX progress of was on great $XX also other other strength, XXX with margin the rationalizing on with revenue down since show opportunities effective for with improving developing continues negative the line the the in acquisitions. wanting As all order Nobles is quarter. with organization the hand, to impressive, business, call, customers, F-XX, and to virus defense ahead. developing quarters over missile, along revenue growth, not V-XX headwind industry defense has in the included being year-over-year, weapons This the all and in only team and systems our not our expectations. particularly communication Ducommun's value show however, but from year. impact F-XX, for Worldwide, April structure to CH-XXK overcoming pricing, Though been strategic programs. that XX% of the showed increases focusing new the from the Ducommun's MAX Osprey, defense business, reasons operations, new gains overall excellent providing technologies, revenue Patriot XX.X% is A been quarter majority second aerospace performance an has The of million along F-XX with markets and the and the progress, strength Ducommun's due big a up product cost along to the Heavy-Lift, few for evident the the business, in flat portfolio, driving

General which area happy Ducommun's I I'm call Systems. new Another our this at major with efforts Atomics our customer last this during this mentioned Aeronautical UAVs. year to was announce time first today new growth is area in

We full providing agreement Ducommun Missile missile RMS, in series preferred supplier production and now Monrovia, July Missile structures forward productive many a Predator TOW previous as aircraft, The business, our piloted the performance call, Systems GA, at known mentioned to now critical as new remotely former are program with also Raytheon is by years California, the Defense. strategic and the case, selected on Raytheon leverage with to together. in look signed a center. its thrilled last components continues to be supplier

us have and one year in $XX Midwest, in services have at products centers missile build allowed full of portfolio We we this a and of move in of program These further Raytheon for this over the wins and as other and other will the Ducommun's track million value generate drive compelling total revenue gains utilizing XXXX. now story Technologies defense other to record, OEMs. wins at X performance TOW types to Ducommun sales

which the continues by spot bright business but Ducommun. systems others, as quarter record defense this Total offset Obviously, is QX that for million strength is included across sequentially TOW still XX%, from Ducommun discussed, down order The strong ending QX GA, for backlog key weapon with this an defense of the the numerous for orders grew great The $XXX was ground of based a on the was other all-time real year-over-year platforms, which missile, Aegis for backlog is for part $XXX a the number vehicles, defense business, F-XX, to previously bolstered environment. pressure. company, helped Patriot, and by aerospace F-XX, deliver. commercial million

the with ensure costs. As schedule in our the have have changes we QX pandemic MAX XXX cost adjusted QX, to and actions continued

in solid both the You the team to certainly QX The the our actions managing environment, a due a has operating great incurred. many quickly In job in gross will positive income year-over-year outlook, costs backlog earlier, to with regards mentioned see same and growth can done material no difficult certainly defense, of significant provide percentage. strong in this our pandemic-related the revenue. the moving expansion profit effectiveness programs

QX the profile down revenue for we XX% same the However, see XX% to QX, being as year-over-year.

for XXX sequential at were Our XX revenue the of better for was comments Aerosystems on the for but Spirit April XXXX this in in MAX. XXX QX, call the shipments time based

spot, know, basis XX. quarter, real to Therefore, the to more XXX outlook. X% from from up the XXX operating was comments A in the income we now see this this main our now later reason though, in is XXX adjust we we margins and our points changed that X% between quarter, in As the bright April. had and

but revenue X% range will at look we X%. to we and to be again in the aerospace, that be commercial QX, As again led to XX% due year-over-year same all, will QX, over down business, XX%, by operating estimate will by be as defense, again the to margins

the historic strategic great made challenge an defense As through backlog, a of year, also unprecedented with commercial and difference the XXXX, gain challenges created $XX our the many material the XXXX a Ducommun future. of first-half strength great with the along with a many million we clearly MAX, and return at from team. full our you our OEM pandemic, benefiting and to the has challenges, have for has to for level The company, seen shown for the and forward since customers has in initiatives the for a also Ducommun though, our the an look headwind customers. current of defense business, modest wins, of historic the some Despite recovery Airbus leveraging shareholder. revenue for growth to year share due along long-term

strong XX%. additional second variety our we $XX.X growth up provide including me of representing posted of XXXX, We space let programs. color aspect million, markets, our military broad again every product platforms, nearly versus some our and on Now revenues a and with products across portfolio. once drove Beginning of quarter sector, defense revenue

F-XX strong for programs, increases as well V-XX. as our particularly top the the expansion helicopters mentioned aircraft and demand As earlier, shipments for we in such saw the F-XX and for CH-XXK military as F-XX, fixed-wing line with

going again missile across Patriot space applications, many this quarter. significant forward. military the see can rose and addition, growth system In We

ground We also of as vehicle the growth a such Leopard. had number programs, on significant Clouded

revenue military quarter Ducommun's the revenue second in The period. XX% represented and space of

be within for to all with at move representing over balance at of adjusted QX. for to and commercial term. majority XX% second backlog. Within programs stated a many the Ducommun's increase quarter financial by was review quarter, revenue has expansion portfolio by backlog positioned up driven declined well Airbus the we platforms quarter The $XX.X positioned an our long all-time commercial our several Ducommun's XXXX the record-high the aerospace Chris to going forward that, a rates and results. Chris? attributed decline XXX over the at program. clearly is have the benefit and puts costs downturn as million as effectively earlier, MAX growth in over rate further of With the as of roughly the the XXX end next expected, end second defense an managed on stands COVID-XX stabilize quarters I'll again, to sector our year-over-year, year-over-year is impressive and, second future. $XXX XX% MAX as important build once with across continue and also as our the in We declines backlog since be with well operations, This other the our aerospace well pandemic. impacted sectors million, ended the of Ducommun, very

everyone. Thank you, and good Steve, afternoon,

As earnings when you further along company's filing, a the mentioned the description call. website, that is for it can shows today's already release the reminder, out a on information on up there, of with see QX SEC

with second our As particularly that going overall pleased and demand quarter has strong sector impacted us at forward. global Steve our commercial our leveraging within defense the well, serve to a and remain pandemic while will demand. that discussed, military results, confident severely production we performance We centers ongoing were during ability flex aircraft

The second the to commercial the customers. XXXX the from and $XX.X aerospace sales details Revenue versus million, for our was sector, quarter reflected the second Review by of space $XXX.X million of second results. lower military move of of million our XXXX. $XXX.X the of offset within quarter XXXX. revenue I'll $XX.X million in higher overall Now performance quarter of

lower the platforms by space As continues to solid to Growth in have been commercial overall drive sustained negatively Steve at second of military impacted quarter approximately discussed, a COVID-XX. $XXX and demand business. end the nearly of backlog base of was Ducommun's all the our million. sector due

from quarter, customer XX The expected due was favorable million, As year-over-year or a benefit lower of to year's last rose strong of costs. with revenue. due XX.X%, months mix the gross and product gross $XX.X based reminder, orders commercial potential the delivery purchase the for from compensation posted comparable in $XX.X fixed increase year, period. million profit a we as XX.X% We margins and Gross less. aerospace prior backlog fell and firm to as to lower revenue prices to define margins dates agreements, on long-term

$XX company reported margins versus of million, execution adjusted revenue, million, at October $X.X expanding Nobles We X.X%. net levels. and margin on or of to manufacturing This debt execution cash cost on noted margins income control decrease sustaining an year, initiatives. of XXXX and the down income to or continue SG&A income of offset lower along year-over-year was revenue, period. XXXX. even by of of prior share, year to quarter income and $XX.X income revenue, $XX or $XX.X company for debt outstanding the period quarter was the decline to quarter million XXXX. $X.X possible, increased partially the second for per million, expense $X.X interest revolver, million, XXXX. share. million operating EBITDA $XX of The as on X.X% to onetime the end higher second reflecting compares focus of to in operating drawing revenue, or $X.XX share, our last of more The where operating severance year compares hand of current SG&A remained diluted and which and as to revenue, in Adjusted of in the as volumes gross million, $XX.X was lower diluted rates XX.X% due lower under $X.XX second quarter than in of Interest included of XX.X% reported the second The the an which was net comparable year XXXX, pressure. year due primarily year-over-year of overall million, $XX.X versus income of for net in compared million due million for $XX.X or the or in with $X.X per of million offset as and, funding period, the million, acquisition per the adjusted the million, million impact This remain The from an The diluted quarter prior favorable prior adjusted primarily the was second expense. lower or company's expense X.X% earlier. revenue, adjusted quarter or XXXX, for $X.X $X.XX of second was higher $X.X the quarter,

Now let me to segment results. our turn

in and offset of a segment Systems commercial in the revenue, XX.X% of period. increase to $XX volumes million quarter second Electronic in XXXX, $X the impacted year million, in Our $XX.X second lower XX.X% revenue reflected These sequentially versus or military results of compensation the Systems XXXX, $X.X the posted prior but and manufacturing quarter revenue, mix period. performance the reflect benefit the million $X.X XXXX. aerospace company's of sales of for space to across partially million, revenue income or the Electronic year of by The costs operating versus million $XX.X posted versus of negatively both first compared quarter million customers, prior lower platforms. and product margins

posted $X.X aerospace The offset by of $XX.X revenue of Structural $XX.X of military as due discussed, revenue in company's markets. year. partially and space the million commercial second million Our segment versus was the XXXX, posted partially quarter revenue. $X.X or Steve the revenue, our $XX.X million million, income last and dynamics, income for of of million, compares income unfavorable year-over-year manufacturing operating margin product to operating or $X.X reflected Systems This favorable an or XX.X% volumes, XX.X% mix. decline revenue, of million, offset of quarter operating $XX.X of operating by XX.X% The year. adjusted last of million sales across within to current year-over-year applications, demand Systems decrease higher reflecting of lower adjusted Structural

center. on our the Mexico, Structural facility is I occurred Systems segment. This of Systems, incident a Guaymas, quarter second mention part I that to finish of our As our Structural update my related manufacturing briefly subsequent to close want an to performance

is there facility, ended June fire a XX, approximately severely June totaling buildings Our XXXX, the injuries. XX, feet. of X no which XXXX. square damaged XX,XXX were second quarter Thankfully, comprised On fiscal

we and property for and inventory our centers. this historically been performance where However, perform of a damaged. equipment were secondary has This in leased a operations facility number site

location In addition, this VersaCore our product has supported line.

not expect covered majority, will all, the the losses have coverage We for policy. and if the items the of under insurance be

the significant plan several working contingency production are our absorb to carrier with to In our capabilities, performance and near-term, to will will incorporates for production the material other utilize allow we that that the on to losses Guaymas these the the meeting our our currently which we and We change not in centers. planned will of claims focus work expect us We needs for was assess a the performance levels, manufacturing do insurance redundant center process. through continue customers' products.

reporting $X.X fire. results will and For Administrative million, quarter X.X% second in $X.X X.X% to the exclude XXXX. the This adjusted charges of quarter remainder severance be XXXX. our activities the the was of Fiscal the for XXXX versus CG&A restructure in revenue, or we Guaymas General of reflects second and or XXXX, impact expense of Corporate million onetime expense. revenue, of the million, will related of $X.X

from generated the and million $XXX of of $X.X liquidity lower $XX the of quarter cash million period. prior year to capital We offset Turning quarter million of income. available the our $X.X remaining net of at end by liquidity to of on during management, million on revolver, effective capital partially compared hand, working XXXX, resources, the we plus This during performance cash operations second reflected second million, have comprised XXXX. $XX

until be our We debt with continue facilities not credit XXXX. our covenants, in XXXX to mature compliance and and do

As ceiling our leverage a ratio reminder, covenant X.XX. is

the X.X to priority, operating was the for our ratio remainder end Cash second the of expect flow XXXX. of structure we quarter within free and and generation remains management leverage efficient our cash of positive XXXX. at Our cost generate

XXXX. $XX between and million cash These expenditures, incremental estimates XXXX of aligns of a spending fire during and the anticipate reflect second more million $XX the spent terms in In $X.X decrease our initiatives XXXX. manufacturing required to capabilities we in million with spending not the spending and Guaymas. versus do result This capital the damaged conservation in capital of replace than in should quarter XX%

not management, majority, of the flexing our from insurance recoveries. even forward. continue the of cost safety is working performance Employee on to be capital we we schedules as if expect all, top move mind, funded optimizing center as always We spending to production and focus

effort his a focused the to demands the who back very and Ducommun period. of turn execution on the customers' satisfying over performance by resilient this now during was Steve challenging QX Steve? for employees, remain strong Our it result I'll closing remarks. all

this customers, to I with also and again communities. through partners their like take work of pandemic. this for that closing, charities and ahead Thank today provided I'd challenges operate also as we performing our first, the footprint, through certainly, challenges thought work In local the have times right you runway tell information I'm continue we together. them help million all Chris. these Again, was quarter all want from shareholders have to some and business you. also quarter thank would the dealing the area I face and have Okay, we despite believe the term. neighbors in lot of do operational given important as second support hope cost now their out Well, the in employees long the and and that crisis. to structure, XXXX. many to I current discipline where difficult strong our the leadership time add Ducommun to I the of proud to we experience $X efforts our continued of we a We've

some let's over members for With please. calls, job our that, stressful, operations Our done get show up every customers day and nation. and, you. to team at our it Thank turn though the

comes Your line first from the Ken question Instructions] Canaccord. from of [Operator Herbert

open. now is line Your

Hi, Steve good Chris. and afternoon.

Hi, Ken.

you? Hi, are how

well. Pretty good. Hope are you guys

thank you. Good,

the nice predominantly? Systems ask, Hey, just anything first with Structural Or the volume? Steve, really wanted mix on, that a I in increase. going sequentially segment Was was down there else obviously, showed margins to

take one. I'll that

things. on big So sure. the was Structures, Mix couple play, part Ken, a it of a of for was

Spirit, demand hitting end QX of in sequentially, terms was right a sort with started QX of we and was pandemic that out that storm to the If get perfect Boeing the had there quarter where and as we you came look at of pushed sort well. during into

quarters. of sort along for end a bit. being in the had the So QX, for able we'd for on lot then changed and little But lower mix, better realignment of into and we like, in in than QX, QX the during got path spot several taking cleanly absorb was costs had place at of was of And as that a as it and helped we QX mix QX, us. number That the the and some with flexing clear that a QX, also effect helped tough certainly been margin us and that's performance. QX, a ripple certainly initiatives the for in that as put the why to

we're and react Ken, able out think I to with we have day-to-day, quickly these productivity. set obviously costs the up we're it driving cost way And as performance week-to-week appropriate. managing centers, and move

look first Okay. it's coming the the XX%, Or of sort high-teens quarter? maybe sort there relative revised helped else two schedule about the between line that's And talking of now I down the the the of out for offset great. come first anything outlook MAX the second to is MAX? were to at I mid- maybe the you year, That's out Is exclusively of quarter quarters. as top that of and half think or

Spirit. for XX% as that in June pretty of which were. the we talked give to we changed. April on came to down middle felt in it know, we be situation was On And XX.X%, really And $XXX in be Ken, look, the in million more had where as XX. a past, were is by we we you that where appropriate, So And this the said, in being XX% much QX; still to April to didn't granular. XX, little you I we're at we we going book

a then XX%. best going right Okay? That's we're effort can QX, little better get to it, really again to we So at to when we're we be the down. And XX% XX% now. in give going looked XX% to

It's of helpful, your what Have you the the you're very or if on of could just couple I over Steve. to guidance. quarters. you yet adjusted revisions And next Boeing just one question. shipping final downward level schedules you reflect the that appreciate sort program talk from about how much of a be the at Maybe of at, XXX? for can that headwind sort

the of I one of big and things That's was showed run context, a and we've the Obviously, that NG, the Look, terrific. feel. XXXX great XXXX XXX you through lots in know. up on and all MAX I had since have changed, as

both are down. our managing adjusted We Spirit. We production it order with have and Boeing books really our and

So for the about you when the year, second we give information this good we half of feel it.

nice really well, Thanks lot. quarter. Excellent, a

thanks. Appreciate Ken, it. Yeah,

Next SunTrust. Ciarmoli from line question Michael of comes the from

Your line open. is now

good operating current gentlemen. comments. the I'll here, environment. quarter evening, echo Ken's Nice Hey, given

Appreciate you, it. Mike. Thank

in go had Is anything now forecast, to XX, changing from that that Systems. cost or taking you've look out margin a second little Just been original bit, mix guys the at profile? the X.X% margins you changed improvement regarding and taking standpoint? that's are if takeout? the maybe else Has more Anything raised just good and more Or a to biggest, defense cost that just aggressively? half. out with you April sequential back more obviously, cost X%, you But on that the stay in Structural to what's

It's a combination.

it's activities meant talking as the entered to is there us. QX to And helped, have we takeout what So did about, and everybody that been sort a been that we additional see because, as then cost very scenario. dynamic we of got

has sort a will back to, -- of that been business But defense what they the seeing also, with seeing to can it's along that so of part additional come where for And do and it. this of react how sustainment that certainly Structures us. and just

So I will of we it's year. this keep as through what the working half combination, we second and move a it's it think be if

add thing. me let Mike, one

the I corporate. that, you had other do other effective that major flat And organization have think here, go think November is but forward and as we in have a a do, to XXXX. back really spirit. in restructuring especially companies we to time organization, an story I here what we had at they've did through know And I

off it's thing other we the is cost that's a lot of really that that restructuring. year, November since So paying that this haven't back that's had XXXX happening

a we have rates, Got value-based kept know the couple rate, about the times commercial it. pressure back for you as partnering side. It rates can especially up you And with the hearing in like volumes. on mentioned already. pricing I Or on the Anything -- all down, way Anything, been have on getting success, this you've able have of on call defense you gone was higher sounds pricing? on you're get side? to

we've into last gotten quite I'm not going processes we've mentioned in you I've remarks, on heavily we're better the where going, to few a they're if heavily sought And go into at other titanium, of frankly, where of after, lot that. and a strategy little look less our we're competition, my driving we're kind and where specifics, but we're into and been operations. as years really types

are with So happy our us. very customers

side, Or erosion backlog customers? how was have you backlog, customer there? guys on the cancellations from on the cancellations? order just based the seen then that just backlog you what driving rates? production aerospace And specifically guys it. actually Got Is you Is the calculate it more really adjustments commercial and

So or that's quarters? alluded with questions many conversation the some constant to we actual conversation that others. But there, we was other the there's think there in than pushing purchase the from whether quarter What a in little them. different out, embedded this things is that More orders seen about we the have Steve it There's a first thing have Mike. in rate I that couple demand customers. changes have of there it's the and

it. cancellations with not and think a more magnitude, of have in happened. I dealing tough and any but market some we're large, But push-outs So that it's anything of by terms

position think me we're and And that the there. I Like whole add is I things a of my remarks market just The lot we about cancellations. it earlier with goes -- all into do, in Michael, titanium let here. that said, on great in spirit of

backlog, I the do have in adjustments. big fairly But billion a is think, the first I conservative think time backlog deal. we defense our is We're good So $X.X make thing. that's a to story here other, with some for and break to

tip but Agree. more, and that. Predator, And General you maybe you I'll But I'll The now. of just term here? General this on win after have think technology ask we I up portfolio? the you do can them iceberg? Atomics, this use they're maybe the assume with can working lower-cost on Do since more one out brought win options you within Atomics this some further loosely, know might you called be, defense drone penetrate

absolutely XX, I And you. you me April Mike, we Yes, asked was know I the tell customer and couldn't on who do.

General So at time. least Atomics I gave you this

GA Okay, great we're some we're of things and we we there. leader, and terrific customer pal? to got with. is relationship think they're and all, great a building some a think And we've go lots First to be thrilled. there,

back in queue. Very guys. good. the Thanks I'll jump

Yeah, thanks Mike.

Next line Riley. question the comes B. Crawford from of Mike from

now Your line open. is

back and Thank I went is an the second highest the back record? quarter you. XXXX. I could on see all-time in the XX.X%, margins, gross Hey, that was of

of XXXX, since one this in a the with little a have little clicking watermark believe, is LaBarge But bigger. in we this lot is a back in popped that acquisition high a earlier would certainly decade, I now. things

to We just I defense are up accident phone the to a my And doesn't or this Mike, understand, put the on everybody happen boats side. remarks, these us in, industry. lot remarks in earlier, the by per of all just want of last years, really the on in in to position margins where my the tough delivering put news we're despite aero commercial real some time couple

working is see for inventory by Or you these new slowdown, accident? is plan a in And that of capital, the just where want were of that of on the for going to function not military XXX? more by the Was Okay. That's increase number some And Structural units certain these where you accident, great. programs? forward? do accounts, with of gearing a up Is regarding, that up. not to

So the little of a answer there, Mike, both. bit is

able of time that to material the some turbulent that being But there have leakage where the lot QX certainly as are goes components. And programs off period, we're definitely new into some was a of So lead some there places we went demand as that can turning we building we certainly change have through to QX on build complex correlated we some up, into extent. long expectation, well. and to have or

So half go? to, of We where we want as the not to, do in would the we're second like certainly to showing terrific Steve here growth alluded year.

like we to the as So be through year. appropriately would inventory we go to manage the able

VersaCore manufacturing, general. final VersaCore and then deliveries relates question status how And affect that Guaymas, might to in of Okay. just Airbus the to

the of Guaymas. we circle to where plant a Guaymas, break presence capabilities X pieces. the it in in since those, operations that let's there And back done There's on a secondary years for we've had coming were into primary lot So back operations for down again we've have from.

California view change in are retooling in a to it's case, that need other done deliver literally, it. The to being has back we going that, here being redeploying to and some that's one not there in what there to that been online And as doing we're relates can. that So our just we -- in we at facilities there. on significant able deliver part out. where to VersaCore, do quickly finish And of product been for we as Southern do hit getting investment

here. just you look, know follow know, Look, as And Mike, at and chime I it. let VersaCore, about in you very upbeat we're me

for -- I'll actually thing is the the as other based of certain California. out team are The mention as of business they're members well his that GM Gardena,

are was of going work no hurt, one that thing, but the with we're this to glad Guaymas thing the we disappointed where -- other of fine. production to and quick course we're able certainly got move and out pretty we have So do

very All much. right, you thank

Thanks Mike.

[Operator you Instructions] And Ken question Canaccord. have a from from follow-up Herbert

Your is open. line now

Yeah, hi. I questions. follow-up couple had quick of just a

some first, opportunity them on a you can than again seems was anticipated. for bit? what The that in the It contribution us from grow been remind been how Can comment to you going? take maybe growth like faster little share maybe you the little quarter a just And maybe on there's some Nobles, to or has that Nobles? acquisition specifically

Ken, I'll it. Chris. is address this

their and put of small enough, to and financial to size in the acquisition LDS similar acquisition, related of we the the with similar CTP, information lot So statement. to of didn't a size

but help that's them Structure no in And only three as a acquisition. sort are move too, time but come certainly, happy And nice smoothly. thrown Clouded they're also that that, way and dollar going continuing to have tuck-ins' So we to find Noble's thought quicker has those alluded they Leopard, grow. at of of there's ways what have amount But our ways to were very We the on than finding to not with been very the with that as as even come them other to in, some grow. that forward. grow preacquisition, said we to we story Steve in Having ways the specific will there. has continue they there acquisition the gone there, believe

in well. as me let Ken, chime just

So has been and okay, marine. look, legacy aircraft, on Nobles'

Leopard and, obviously, some Now and we're the moving into Clouded vehicles ground other things.

something going shoot is the -- This it's market we've we're leader. very So ammunition that well. been business

So we're to XXXX and they're well. driving it, going think things in as great have I absolutely

all it's Nobles. for thumbs-up So

of That's little of start you've how year. things a and curious what until comment good there can normalize period a on an to Steve, sort activity sort roughly the bit. of to now And opportunities acquisition if since of looks maybe in and you the and you're just hear. you've maybe pipeline been seeing terms time I'm done maybe

Sure, Ken. Thank you.

So pipeline. there a is

Okay? are So active. we

as did the me I was we at department worked leads BD the KKR Suman best of Suman think and well. in lot with experience, and bring a ex-UTC one things of Mookerji.

got things. right okay. think right we've got I looking process, we're so pipeline people. the the we've Certainly, is at And The

to think I for last shareholders aggressive And and worked but we rush. lean in they've want cadence, our deals, to we all that the the and to as company our three at for really general. far last, out if we want and As in, just and look for well don't want be I we think

like, we we is find something if So our cadence we go after it.

for We years. being last the of able to have a pretty couple over close successful record

to come on So more Ken. that,

important Okay? It's us. to

obviously been over It's know. big a last years. of the part success the I few

been a help. It's big

final it's replacement. one volume. if up maybe program a been obviously uptick guess, little signed just talking Yes. the I'm from about you've But premier not on just an opportunities that I have they're question, of new, on, complete I'm I or more if what some And the and There's Boeing. bidder some sort you're to been a that's curious Steve. calling curious, know And I suppliers for could, how a maybe if that, for that PFS-type viewing something some you've of invest maybe had the discussions

that. know, just Ken, to had any haven't yet we Boeing conversations with on

guys. yield you. Okay, I perfect. Thank

Yeah, thanks much. very

are there no the time, in this questions queue. At further

I'll So for Mr. any back to Oswald the remarks. turn call closing

soon. Well, just And to and you you hope again speaking much. forward be very health everybody right. I will we with good front. evening, the a everyone thank your look to yourself things things want I All good and for to time, to wish we Okay. you on again certainly talk next pandemic again when want better families. wish for just we'll

you and for participating. this conference gentlemen, Ladies call. concludes today's Thank

You may now disconnect.